Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

International Telecom Settlements: Gaming Incentives, Carrier Alliances and Pareto‐Superior Reform

International Telecom Settlements: Gaming Incentives, Carrier Alliances and Pareto‐Superior Reform Liberalized countries that allow competition in international telecommunications favor traffic re‐routing practices as arbitrage against foreign monopolists. This view is seriously incomplete. Monopolists, allied with carriers in liberalized countries, can use these practices to reduce termination payments to nonalliance carriers??thereby harming also consumers in liberalized countries??by gaming regulations that require equal termination rates at both ends and ‘proportional return’ (the monopolist’s traffic is allocated among carriers in proportion to their shares of traffic to its country). We also present a simple bilateral settlements reform that eliminates gaming incentives and other proportional‐return distortions, yet benefits both countries. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Journal of Industrial Economics Wiley

International Telecom Settlements: Gaming Incentives, Carrier Alliances and Pareto‐Superior Reform

Loading next page...
 
/lp/wiley/international-telecom-settlements-gaming-incentives-carrier-alliances-JQMysX0AKI

References (21)

Publisher
Wiley
Copyright
Blackwell Publishers Ltd 2001
ISSN
0022-1821
eISSN
1467-6451
DOI
10.1111/1467-6451.00153
Publisher site
See Article on Publisher Site

Abstract

Liberalized countries that allow competition in international telecommunications favor traffic re‐routing practices as arbitrage against foreign monopolists. This view is seriously incomplete. Monopolists, allied with carriers in liberalized countries, can use these practices to reduce termination payments to nonalliance carriers??thereby harming also consumers in liberalized countries??by gaming regulations that require equal termination rates at both ends and ‘proportional return’ (the monopolist’s traffic is allocated among carriers in proportion to their shares of traffic to its country). We also present a simple bilateral settlements reform that eliminates gaming incentives and other proportional‐return distortions, yet benefits both countries.

Journal

The Journal of Industrial EconomicsWiley

Published: Sep 1, 2001

There are no references for this article.